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Rackspace Technology, Inc. RXT Valuation Allowance, Deferred Tax Asset, Reductions

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Other financials

Income statement

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Revenue$678.1M+1.9%
Gross profit$119.1M-6.1%
Operating income-$17.8M+53.6%
Net income$8.3M+112%
EPS (diluted)$0.03+110%

Balance sheet

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Cash & equivalents$96.0M-26.8%
Total debt$3.2B-3.1%
Total equity-$1.2B-13.4%
Total assets$2.8B-6.8%

Cash flow

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Operating cash flow$5.1M-59.5%
CapEx$14.5M+74.7%
Free cash flow-$9.4M-319%

Valuation

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Market cap$1.7B-39.7%

Profitability

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Gross margin18.5%-1.0pp
Operating margin-3%-1.2pp
Net margin-5.4%-1.8pp
FCF margin2.8%

Returns & leverage

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Return on equity-205.2%-222pp
Debt / equity117.7×+115×
Current ratio0.7×-0.1×

Where this comes from

Reported directly by Rackspace Technology, Inc. in its filing.

Tagged under the XBRL concept rxt:ValuationAllowanceDeferredTaxAssetReductions.

The official record: Rackspace Technology, Inc.’s 10-K, filed March 6, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Rackspace Technology, Inc.'s valuation allowance, deferred tax asset, reductions?
Rackspace Technology, Inc. (RXT) reported valuation allowance, deferred tax asset, reductions of $825K in Q4 2025.
How has Rackspace Technology, Inc.'s valuation allowance, deferred tax asset, reductions changed year-over-year?
Rackspace Technology, Inc.'s valuation allowance, deferred tax asset, reductions decreased by 80.4% year-over-year, from $4.2M to $825K.
What does valuation allowance, deferred tax asset, reductions mean?
Reflects the reversal or reduction of the valuation allowance previously recorded against deferred tax assets. This occurs when management determines that it is more likely than not that the deferred tax assets will be realized in the future. A reduction in this allowance generally indicates improved financial performance or better tax planning outcomes.